Things To Consider While Conducting Financial Software Development For Your Business

Technology is changing every now and then and the financial industry is no exception.  With the rise in artificial intelligence, machine learning, and big data, the service industry is found evolving at a fanatic pace. 

Well, we won’t be talking about other service industries for now. The following post focuses on what is financial software development? How is it important and beneficial for both small and large scale organizations? How to choose reliable financial software development services? Tips to consider while conducting your first-finance-based project.  So without any further ado, let’s begin!       

What is Fintech?

In simple words, Fintech is a portmanteau of the terms “finance” and “technology”.  As a result, more and more businesses are found using technology to enhance or automate financial services and processes in multiple ways. From mobile banking and insurance to cryptocurrency and investment apps, fintech has a seemingly endless array of applications. 

Before we proceed further with benefits, it’s time to see how fintech works. Though, fintech is not a new industry. The only thing is that this is one industry in particular that has evolved at a rapid pace. You see, technology has to some degree always been part of the financial world. Do you remember the introduction of credit cards in 1950s or ATMs,  electronic trading floors, personal finance apps and high-frequency trading in the decades that followed.

Fortunately, today we have a plethora of financial software development service providers who continue to revolutionize the financial sector and empower business owners to streamline day-to-day business operations to serve their customers better.  

Examples of Financial software development Solutions 

• Banking – Mobile banking has been pretty much in talks these days. Today, consumers have increasingly demanded easy digital access to their bank accounts, especially on a mobile device. Today most major banks are found offering some kind of mobile banking feature. 

• Cryptocurrency & Blockchain – Cryptocurrency and blockchain has been intertwined with financial technology. Blockchain enables cryptocurrency mining and marketplaces to exist, while advancements in cryptocurrency technology can be attributed to both blockchain and fintech. Even though these two technologies are unique and maybe considered outside the realm but it is high in demand for creating practical applications. 

• Machine Learning & Trading – I am sure you must be knowing what machine learning and trading is. With billions of dollars to be made, it’s no surprise machine learning has played an increasingly important role in fintech. With such power, professionals can run massive amounts of data through algorithms designed to spot trends and risks, allowing consumers, companies, banks and additional organizations to have a more informed understanding of investment and purchasing risks earlier on in the process. 

• Payments – Transferring money is something financial software development is extremely great at. With the rise in digital technology, it has now become easier to send money digitally anywhere in the world.  

• Insurance – Insurance does fall under the umbrella of fintech. Insurance is a somewhat slow adopter of technology, and many fintech startups are partnering with traditional insurance companies to help automate processes and expand coverage. From mobile car insurance to wearables for health insurance, the industry is staring down tons of innovation.

How is Fintech beneficial for your Business? 

Now think for a moment, can you recall your pre-COVID-19 life? The one where social distancing had no meaning, wearing masks was not a compulsion and work from home was no longer the matter of concern. It feels like everything has changed overnight. Fortunately, we have different technologies at the bay. 

It is a safe bet to say that after the pandemic, Fintech seems to have morphed from being associated with scrappy startups to becoming a major facet of established and legacy financial institutions. The term which was once largely being implied on the silicon valley-based disruptors shaking up the big banks, today, many companies have teamed up with the incumbents they purportedly sought to usurp.

Further it’s time to discuss why one must invest in fintech app development?

• Easy payment process 

What’s the mantra for every business is to enhance cash flow. Cash is the only life and death issue for your business. There are many important things in your business to worry about  –  people, products, service  – but these are all important because they impact cash.

Now the reason could be anything whether you wish to expand your business or make higher investments than before, I am sure all this will compel you to put a huge strain on cash. Fintech has made it possible for businesses to obtain the funding they need through online lending which is simple and fast with easier application experiences than possible through traditional financial institutions. Crowdfunding, for example, allows you to get funds quickly and efficiently from people that you have never met. 

In addition to this, financial software development offers such kind of technology and transparency that banks don’t have. So when you have access to cash flow you can move fast and exploit opportunities quicker than your competition.

• Risks are evaluated effectively 

There is no denying the fact that fintech solutions have taken everyone aback by storm. Unlike earlier, today it has become way easier to predict as well as overcome risks in the given possible time. These software-based solutions have the potential to scan a vast amount of information from different sources and use a wiser approach while lending a loan or making any transaction, which is cutting down the risk of errors and frauds.

• Automation

Another crucial aspect of financial software development is automation. Now do you think having a clear understanding of your company’s cash flow allows you to make informed financial decisions like knowing when to invest your money, when to take out a loan, or when you can and should be hiring more employees. Well, what I want to say is there might be a stronger potential growth and expansion only if you know how to manage your cash flow accurately. 

• Improves Financial Data Security

You see cyberattacks can cause costly damage to business operations and could taint your credibility, so you need to be hypervigilant in protecting both your company’s data and your customer’s. Many companies are now using biometric payments where systems can charge a customer’s credit based on fingerprint scans, face recognition, or voice authentication. To protect their own information, businesses are implementing methods like data encryption or complex algorithms to encode data, and tokenization, where data is turned into random symbols or tokens.

• Cost – effective

The primary challenge to entry into the financial business has been cost. By making the financial services available on devices that millions of people have, i.e. smartphones, Fintech has improved the PoS (Point of Sales) system and cut down the expenses of the businesses, along with gaining sophisticated analytics data to better engage their audience.

Things to Consider before conducting financial software development

Being one of the  fastest-growing industries with a record-breaking $112 billion investments raised in 2018, Fintech has now become very attractive to newcomers. In fact, several industry watchers and analysts are found expecting another wave of companies in the next few years as we continue to see early fintech startup employees move on to start their own businesses.  

Now to survive in the ever-competing financial sector you do need to seek for the best financial software development service providers who have managed to cut through the noise and been leading the way by taking some rather unconventional, even daring approaches and outcomes. 

Now here would like to take certain steps to take into consideration before you even start building an actual financial software development project. 

  #1 Have you decided the purpose yet? 

Well, whether you have just begun with your first fintech project or commencing an entire business out of it, it is very important to decide on the purpose/objective. Now tell me, why are you doing this? Is there any goal or an objective behind? And most important of all, how will this financial software development project benefit your company. 

Another reason to decide on your goal is that it helps you in making your services more accessible to your clients. Also, you get a better internal system for human resource management. Now all these benefits can be availed irrespective of your purposes. Knowing the purpose of the project, you must decide what specific type of software you want to develop. Only after having a clear vision of what that is that you and your team are going to build proceed to the next step – research and feasibility analysis.  

#2 Research, research and research

As soon as you have come up with an objective for your upcoming financial software development project, it’s time to research. Now what to research? First, research the type of software you plan to develop, its peculiarities and the current trends in this niche. Here you can try looking for examples that are present of the kind of product you want to develop. Take a look at those and note the key characteristics, what you like and what you don’t like about them. Search for relevant case studies. Learn from the experiences and mistakes of others.

Stronger the research, the better outcome! Such analysis attempts to reveal the strong and weak sides of your software idea and give you an answer on whether it makes sense to move forward with your project at all. It is better that you conduct this analysis with your project manager or business analyst if you have one.

#3 Choose your Tech Stack

Of course, you do have financial software development service providers at bay but it is crucial for you to research yourself well instead of blindtrusting. Selecting your platform and choosing the right tech stack is equally important. This stack may include but is not limited to programming languages, database systems, frameworks, etc.

Now the question is what to include and what not to? What your stack will include depends on the purpose and application of your software and who the end user is. For instance, a web banking app will probably utilize Javascript, PHP, MySQL, Ruby. An iOS-based application, however, will require a different set of technologies for finance mobile app development as an example.

 Basically, choosing the tech stack that ensures you have been selected for your project will provide you with the most effective stack to reach your end goals. Having done this, proceed to the next step – a technical specification.

Conclusion

And that’s a wrap! You see, conducting financial software development is not a one-time process. Before developing the actual product, you must take seven mandatory steps given in the post to make your project successful and avoid any possible mistakes. Good luck! #KhabarLive #hydnews